Celsius Network Requests Funds Back from Users Who Withdrew Crypto
The former crypto lending platform, Celsius Network, is asking users who withdrew more than $100,000 within 90 days of the platform’s collapse to repay the capital. This practice is common in US bankruptcy management to ensure fair reimbursement for all affected customers. Users who withdrew less than $100,000 are not required to repay the money but must vote on the plan and not waive the releases provided. The aim is to offer just compensation to all stakeholders who participated in Celsius’ bankruptcy.
Celsius Prepares to Repay Creditors and Releases ETH from Staking
Celsius Network is liquidating its assets to meet refund requests as part of the post-chapter 11 reorganization process. Investors who lost money in Celsius will soon see a portion of their investment returned in BTC or ETH. The platform has withdrawn 206,300 ETH worth approximately $490 million from staking. The withdrawn cryptocurrency will be used to offset costs and ensure timely distributions to creditors. The move has not caused a drop in the price of ETH and is seen as positive for its long-term future.
Hot Take: Celsius Network Seeks Repayment from Withdrawn Crypto
Celsius Network’s request for users who withdrew significant amounts of crypto before its collapse to repay the capital is a common practice in US bankruptcy management. The aim is to provide fair compensation to all affected customers. Additionally, Celsius is liquidating assets and releasing ETH from staking to meet refund requests and distribute funds to creditors. This move has not negatively impacted the price of ETH and may have positive implications for its long-term future. As Celsius works towards repaying its creditors, investors await the return of a portion of their investments in BTC or ETH.
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